TY - JOUR
T1 - Only words matter? The effects of cognitive abilities on commercial insurance participation
AU - Zhang, Tingting
AU - Li, Wenquan
AU - Li, Kaixin
AU - Liu, Zhifeng
N1 - Publisher Copyright:
© 2022 Elsevier Inc.
PY - 2022/7
Y1 - 2022/7
N2 - We examine the relationship between cognitive abilities and commercial insurance participation. Using data from the Chinese Family Panel Study, we find that average cognitive ability has a significantly positive impact on commercial insurance participation. However, this influence comes mainly from literacy ability, indicating that the literal meaning of the words plays a major role. Additionally, trust level can also affect the impacts of cognitive abilities on commercial insurance participation. Specifically, residents with lower trust levels are less likely to use their cognitive abilities to process information and make commercial insurance purchasing decisions. Moreover, we identify the supplementary effect of economic and managerial knowledge on cognitive abilities.
AB - We examine the relationship between cognitive abilities and commercial insurance participation. Using data from the Chinese Family Panel Study, we find that average cognitive ability has a significantly positive impact on commercial insurance participation. However, this influence comes mainly from literacy ability, indicating that the literal meaning of the words plays a major role. Additionally, trust level can also affect the impacts of cognitive abilities on commercial insurance participation. Specifically, residents with lower trust levels are less likely to use their cognitive abilities to process information and make commercial insurance purchasing decisions. Moreover, we identify the supplementary effect of economic and managerial knowledge on cognitive abilities.
KW - Cognitive ability
KW - Information
KW - Insurance participation
KW - Trust
UR - http://www.scopus.com/inward/record.url?scp=85128163339&partnerID=8YFLogxK
U2 - 10.1016/j.najef.2022.101691
DO - 10.1016/j.najef.2022.101691
M3 - Article
AN - SCOPUS:85128163339
SN - 1062-9408
VL - 61
JO - North American Journal of Economics and Finance
JF - North American Journal of Economics and Finance
M1 - 101691
ER -